2018 (12) TMI 532 - AAR - GST

Levy of GST - Separate registration is required or not - raising of invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where there is no separate GST Registration - place of supply - mention of GSTIN of Mumbai and Dispatch place of Haldia Port in e-way bill - Held that - Firstly, since the applicant will be importing the goods into India as per Section 7(2) of the IGST Act, 2017, such supply of goods imported into India shall be treated as supply of goods in the course of Inter State Trade or commerce - Secondly in respect of goods imported into India, as per Section 11(a) Of the IGST Act, 2017, the place of supply shall be the location of the importer and in the present case since the importer is registered in Mumbai, the place of supply shall be Mumbai, Maharashtra. In the present case, the place of supply is the location of the importer who is situated in the State of Maharashtra and hence the applicant will be clearing the goods by paying IGST form their GSTIN issued in Mumbai, Maharashtra. Since the applicant has no establishment or place of operation or any godown or GSTIN in the State of West Bengal i.e. the port of import, therefore, after exbonding of imported goods from the Customs warehouse at Kolkata and for further sales after exbonding, Whether that would be interstate or intrastate supply would depend upon the place of supply of goods as per Section 10 and Section 11 of the IGST Act, 2017. Thus, the place from where the applicant makes a taxable Supply of Goods shall be his location, in this case, the Mumbai Head Office and since the applicant does not have any godown in the state of West Bengal and we feel that the applicant can clear the goods on the basis of invoices issued by the Mumbai Head Office and therefore they need not take separate registration in the State of West Bengal. Since as an importer the place of supply for the applicant in this case will be Mumbai, and the goods also will be cleared on the name of the Mumbai registered address while paying IGST at the time of Customs Clearance, it would follow that they can do the further transaction mentioning the GSTIN of their Mumbai office - they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse, Kolkata. Ruling - The procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where there is no separate GST Registration and Charging of IGST from Mumbai to our Customers is correct - For this transaction, no separate registration in the State of West Bengal is required. It is correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port in e-way bill.

Issues Involved:
1. Whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata without separate GST Registration in West Bengal and charge IGST from Mumbai to customers is correct.
2. If separate registration in West Bengal is not needed, can transactions be conducted on Mumbai Head Office GSTIN, and is it correct to mention the GSTIN of Mumbai and dispatch place of Haldia Port in the e-way bill?

Issue-wise Detailed Analysis:

1. Procedure to Raise Invoice from Mumbai Head Office for Imports at Haldia Port:

The applicant, an importer of chemicals, wishes to import chemicals at Haldia Port, Kolkata, and store them at a rented Customs Bonded warehouse without having any establishment or place of operation in West Bengal. The applicant intends to clear the goods from the warehouse in the name of their Mumbai Head Office, which is registered under GST in Maharashtra, and sell the goods to customers in West Bengal and nearby states, charging IGST by raising bills from Mumbai.

The applicant argues that since they are only registered in Maharashtra and the supply of goods is from Maharashtra, it constitutes an interstate supply as defined in Section 7(3) of the IGST Act, 2017, and thus attracts IGST. They contend that registration is required in the state from which taxable supplies are made, not the state to which supplies are made.

The authority clarified that the nature of supply of goods imported into India is an interstate supply as per Section 7(2) of the IGST Act, 2017. The place of supply for goods imported into India is the location of the importer as per Section 11(a) of the IGST Act, 2017, which in this case is Mumbai, Maharashtra. Therefore, the applicant need not take separate registration in West Bengal as the taxable supply is made from Mumbai.

2. Conducting Transactions on Mumbai Head Office GSTIN and Issuance of E-way Bill:

The applicant inquired if they could conduct transactions on the Mumbai Head Office GSTIN and if it is correct to mention the GSTIN of Mumbai and the dispatch place of Haldia Port in the e-way bill.

The authority confirmed that since the place of supply for the applicant is Mumbai, and the goods will be cleared in the name of the Mumbai registered address while paying IGST at the time of customs clearance, the applicant can conduct transactions on the Mumbai Head Office GSTIN. It is correct to mention the GSTIN of Mumbai Head Office in the e-way bill and the dispatch place as Customs Warehouse, Kolkata, subject to issuance of an invoice and payment of applicable taxes as per law.

Order:

1. The procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata without separate GST Registration in West Bengal and charge IGST from Mumbai to customers is correct. No separate registration in the State of West Bengal is required.
2. Transactions can be conducted on Mumbai Head Office GSTIN, and it is correct to mention the GSTIN of Mumbai and the dispatch place of Haldia Port in the e-way bill, subject to following procedure and payment of taxes as per law.

The authority concluded that the applicant's practices align with the provisions of the GST Act, and no separate GST registration in West Bengal is necessary for the described transactions.

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